NIIF in­vests ₹660 crore in HDFC Cap­i­tal’s af­ford­able hous­ing projects

HT Estates - - HTESTATES - Swaraj Singh Dhan­jal

an­a­lysts, adding with the real es­tate mar­ket evolv­ing, there would be clear de­mar­ca­tion be­tween de­vel­op­ers and land­lords.

“No one wants to build land banks any­more. Tra­di­tional de­vel­op­ers are seg­re­gat­ing their port­fo­lios for self-de­vel­op­ment and­strate­gic part­ner­ships,” said Nis­hant Kabra, di­rec­tor and head—lan­dand­de­vel­op­mentser­vices (West In­dia), JLL In­dia. Ben­galuru- based Unishire Group, which hasn’t launched any­thing in three years, plans to fin­ish projects in hand­inthenext 15 months and then eval­u­ate fu­ture plans. “Right now, we wantto mon­e­tise our land ei­ther by­selling or through joint de­vel­op­ments, so we can fund our on­go­ing projects and re­duce debt,” said manag­ing di­rec­tor Pratik Me­hta.

De­vel­op­ers like Nir­mal Ltd and Penin­sula Land Ltd are fo­cusin­gonde­vel­op­ing­some­land parcels on their own while part­ner­ing with other de­vel­op­ers for larger plots.

Nir­mal­hascre­ated asep­a­rate unit called Nir­mal Ven­tures to part­ner with big­ger builders like Go­drejProp­er­ties Ltd, Shapoorji Pal­lonji Real Es­tate and L&T Realty to de­velop their land parcels in Mum­bai. Penin­sula Land has sold most of its non-core as­sets. It has sold land in Pune MUM­BAI: The Na­tional In­vest­ment and In­fra­struc­ture Fund (NIIF) of In­dia on Tues­day said it has in­vested ₹660 crore in HDFC Cap­i­tal Af­ford­able Real Es­tate–2 (HCARE 2), a fund man­aged by HDFC Cap­i­tal Ad­vi­sors. This mark­s­thesec­ond in­vest­ment for NIIF’s Fund of Funds and will see NIIF join a unit of the Abu Dhabi In­vest­ment Author­ity (ADIA) as an in­vestor in HCARE 2. knowl­edge­able in­vestors. This in­vest­ment en­ables in­vestors in the NIIF Fund of Funds to par­tic­i­pate in the at­trac­tive mid in­come and af­ford­able hous­ing sec­tor in In­dia,” said Su­joy Bose, manag­ing di­rec­tor and chief ex­ec­u­tive of NIIF.

HDFCCap­i­talAd­vi­sors, au­nit of Hous­ing De­vel­op­ment Fi­nance Corp Ltd, pro­vides in­vest­ment man­age­ment ser­vices for real es­tate pri­vate eq­uity fi­nanc­ing. It ad­vises HDFC Cap­i­tal Af­ford­able Real Es­tate Fund 1 (HCARE 1) and HCARE 2.

Col­lec­tively, HCARE 1 and HCARE 2 form a $ 1.1 bil­lion in­vest­ment plat­form tar­get­ing af­ford­able and mid-in­come res­i­den­tial projects in 20 big cities in In­dia. The funds pro­vide long term, eq­uity and mez­za­nine cap­i­tal to mar­que de­vel­op­ers at the land and pre-ap­proval stage for the de­vel­op­ment of af­ford­able and mid- in­come hous­ing in In­dia.

“The cur­rent lack of flex­i­ble, long-term cap­i­tal is one of the key­chal­lenges fac­ing de­vel­op­ers of af­ford­able and mid-in­come hous­ing in In­dia. This fund will help ad­dress the de­mand-sup­ply gap in af­ford­able hous­ing and will en­sure that flex­i­ble fi­nanc­ing is pro­vided to qual­ity de­vel­op­ers,” said Deepak Parekh, chair­man of Hous­ing Fi­nance De­vel­op­ment Corp. Ltd (HDFC).

NIIF’s Fund of Funds had pre­vi­ously in­vested £120 mil­lion (around ₹1,163 crore) in Green Growth Eq­uity Fund (GGEF), which will in­vest in re­new­able en­ergy and other green busi­nesses. GGEF aims to raise £500 mil­lion for the fund, which is man­aged­byEverSourceCap­i­tal, a joint ven­ture of home-grown pri­vate eq­uity firm Ever­stone Group and Light­source BP.

The gov­ern­ment had set up the NIIF in 2015 as an in­vest­ment ve­hi­cle for fund­ing com­mer­cially vi­able green­field, brown­field and stalled in­fra­struc­ture projects. The gov­ern­ment is in­vest­ing 49% and the rest of the cor­pus is to be raised from third­party in­vestors, such as sovereign wealth funds, in­sur­ance and­pen­sion­funds, en­dow­ments.

NIIF’s man­date in­cludes in­vest­ing in ar­eas such as en­ergy, trans­porta­tion, hous­ing, wa­ter, waste man­age­ment and other in­fra­struc­ture-re­lated sec­tors in In­dia.

In Jan­uary, NIIF and Dubaibased port op­er­a­tor DP World an­nounced the cre­ation of an in­vest­ment plat­form—Hin­dus­tan In­fra­log—to in­vest in ports, ter­mi­nals, trans­porta­tion and lo­gis­tics busi­nesses in In­dia. The plat­form will in­vest up to $3 bil­lion of eq­uity to ac­quire as­sets and­de­velop projects in these sec­tors.


Some de­vel­op­ers have avoided new launches for years

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